March 3, 2008

Seaboard reports sales increase of 18.7 percent but decrease in earnings by 30 percent

US conglomerate Seaboard Corp. has reported that its 2007 net sales were up 18.7 percent to US$3.2 billion, but earnings have dropped by 30 percent to US$181.3 million.

For the fourth quarter of 2007, the company earned US$36.7 million compared to US$76.7 million from the corresponding period of 2006.

Most the decline came from the company's pork processing unit, as its revenues for 2007 has slumped and remained stagnant. Rising domestic and overseas pork prices were counterbalanced by the pork unit's lower production volumes, with operating income amounting to only US$39.5 million, a staggering drop of 71.4 percent.

According to the company, sky-high prices for corn and soymeal were the main reason behind the drop in earnings.